No new taxes this year, O’Malley says, but Vinny DeMarco seeks one more

Little news is expected from Thursday’s State of the State address, since the governor’s final budget and legislative package have been rolled out.

But along with the usual talk of “tough choices” and “moving forward,” Gov. Martin O’Malley is likely to tout that he balanced his proposed fiscal 2015 budget with “no new taxes or fees” — the first time in six years he can say that.

Thank God, most Marylanders would agree, but not Vinny DeMarco, persistent advocate of higher taxes on cigarettes and booze for the sake of public health as president of Maryland Citizens’ Health Initiative.

DeMarco releases new poll data

On Tuesday, as the snow began to fall, and robbed of his audience at a cancelled senior rally, DeMarco trotted out to reporters a new poll that says almost two-thirds of Marylanders (64%) support raising the cigarette tax yet another $1. DeMarco had begun pushing last year for that raise.

“To help cut down on smoking, particularly among young people, would you favor or oppose a one dollar per pack increase in the state tobacco tax with the money dedicated to healthcare coverage, the state tobacco control program, long-term care for seniors, and other community-based health initiatives?”

Half the people questioned “strongly” favored the proposition while only 27% “strongly” opposed it.

You can argue the question biased the response by saying the tax would cut smoking. The question doesn’t mention that Maryland’s cigarette tax is already $2 a pack, 10th highest in the nation, thanks to DeMarco’s advocacy over the past decade. Three dollars a pack would push Maryland to 6th place, after New York ($4.35), Rhode Island ($3.50), Connecticut ($3.40), Hawaii ($3.20) and Washington ($3.025), and replacing New Jersey at $2.70.

The dollar boost would make Maryland’s tax 10 times higher than Virginia’s 30-cent levy, 49th in the U.S., and six times higher than West Virginia’s 55 cents. Delaware and Pennsylvania are both at $1.60.

Photo by Raul Lieberwerth

Uphill fight

“We understand it will be an uphill fight this year,” said DeMarco. He said Del. Eric Luedtke, D-Montgomery, will be the lead sponsor in the House, with 51 co-sponsors.

The money from the 2007 increase in the tax was used to expand Medicaid coverage, and DeMarco wants to do more of the same.

As in the past, DeMarco’s goal is both to raise more money for health care and reduce use of tobacco by raising the price.

DeMarco said part of this year’s bill, which will be introduced in the Senate by Sens. Verna Jones-Rodwell, D-Baltimore, and Richard Madaleno, D-Montgomery, restores $21 million into Maryland’s smoking cessation program that is supposed to be funded with tobacco settlement money but that has been diverted into other programs.

Lobbying follows familiar pattern

The new poll is part of a typical DeMarco strategy explained in detail in Michael Pertschuk’s book The DeMarco Factor. It shows how DeMarco gathers support with relentless lobbying, unremitting pursuit of media coverage (like this story), polling showing public support, and then getting candidates for the legislature to pledge their support for tobacco tax hikes (or gun control, DeMarco’s other passion) during the campaign.

“In order to enact something like this, the people have to speak,” he said.

The other part of the poll showed that candidates who support a tobacco tax hike do better against candidates who oppose it, even among Republicans.

“We’re confident the people will elect a General Assembly that supports a tobacco tax hike,” DeMarco.

It doesn’t hurt that, unlike the unpopular gas tax hike passed last year, four out of five Marylanders do not use the product he wants to tax more heavily.

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The Health Benefit Exchange Board recommended Monday a broad based funding approach to pay for a federally mandated state health insurance program, now estimated to cost up to $30 million in 2014 and $60 million by 2016.

“The board is in agreement there should be some sort of a transactional fee, a broad based fee, and funding for the exchange that needs to come from multiple places to ensure sustainability and stability,” said Rebecca Pearce, Health Benefit Exchange executive director.

abby_adams

Vinny beating the drum of higher taxes on a shrinking population of smokers? As a PAID lobbyist, he makes his money demonizing one group after another (smokers, gun owners) making promises abt how the tax increase will be used to “expand” programs yet where is the proof that these funds are actually used for the stated purposes? Guess he assumes that the gen population of MD won’t be paying much attemtion to another $1 per pack on those “evil” smokers. They’re just relieved to be spared yet another revenue grab especially those who don’t smoke.

snowmaggedoned

“DeMarco said part of this year’s bill, which will be introduced in the Senate by Sens. Verna Jones-Rodwell, D-Baltimore, and Richard Madaleno, D-Montgomery, restores $21 million into Maryland’s smoking cessation program that is supposed to be funded with tobacco settlement MONEY BUT THAT HAS BEEN DIVERTED INTO OTHER PROGRAMS.”

I think this statement says that the funds have been diverted to other programs and not used for what the tax was initially design for….kind of like the Transportation Fund tax that doesn’t pay for infrastructure repairs like it was designed to do, too.

An angry republican

Isn’t targeting a specific group for taxation called.. i don’t know.. discrimination?

joe

Avid smokers will buy their cigarettes in Virginia, Delaware or elsewhere and cigarette smuggling will increase, as stated. Any body remember prohibition?